A-Mark Precious Metals, Inc.
Climate Impact & Sustainability Data (2021, 2024)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
Environmental Achievements
- Achieved 100% carbon neutrality for A-M Global Logistics subsidiary through the purchase of Verified Emission Reductions (VERs).
Climate Goals & Targets
Environmental Challenges
- Greenhouse gas emissions from A-Mark's operations.
Mitigation Strategies
- Partnered with Prax Group to purchase VERs from sustainable projects globally, including renewable energy, emissions reduction technologies, energy efficiency upgrades, reforestation, and carbon sequestration.
Supply Chain Management
Responsible Procurement
- Will evaluate ESG programs of suppliers and servicers, selecting partners with programs aligned with ESG expectations.
Climate-Related Risks & Opportunities
Reporting Period: 2024
Environmental Metrics
Social Achievements
- Overall employee retention rate for the year ended June 30, 2024 was 83%; excluding the Mint and Logistics operations, our retention rate was 93%.
- As of June 30, 2024, approximately 34% of our employees identified as female, and 46% of our employees were made up of underrepresented minorities.
Climate Goals & Targets
Environmental Challenges
- Supply chain disruptions due to macroeconomic factors
- Intense competition from other online retailers in the Direct-to-Consumer segment
- Accusations of improper sales practices in the Direct-to-Consumer segment
- Increased regulatory scrutiny of advertising and marketing materials
- Need to comply with new environmental reporting regulations (California, SEC, EU)
- Data protection and privacy regulations
- Potential for sales and use tax liabilities
- Counterparty risk in derivative contracts
- Fluctuations in interest rates
- Risks related to operations in foreign countries, particularly China
Mitigation Strategies
- Multiple sources for obtaining bullion products and raw materials for minting operations; maintaining a supply of metal in case of shortages.
- Investment in technology and SEO strategies to maintain competitiveness.
- Compliance with legal and ethical standards in sales practices.
- Devoting substantial resources to comply with laws and regulations.
- Implementing robust cybersecurity risk management procedures.
- Monitoring and managing counterparty risk through credit and position limits.
- Managing interest rate risks by increasing secured loan interest rates and finance product pricing.
- Monitoring political, economic, legal, and regulatory developments in foreign countries and adjusting operations as appropriate.